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Minister for Finance confirms sale of Irish Life to Great-West Lifeco

Finance Minister Michael Noonan today confirmed that agreement has been reached with Great-West Lifeco for the sale of Irish Life for €1.3 billion with an additional dividend of €40 million being paid to the State prior to completion.

The agreement is conditional, most notably on receipt of regulatory approvals, which are customary in a deal of this nature.

Welcoming the agreement, Minister Noonan stated:

I am very pleased to announce that an agreement has been reached with Great-West Lifeco for the sale of Irish Life. Today’s deal is the first time during this crisis that a company in which we have invested has been returned fully to private ownership. This is a historic transaction and provides the Irish taxpayer with a full return on its investment in Irish Life.

The Irish economy is entering its third consecutive year of growth, our deficit is on a downward trajectory and we are beginning to attract the levels of investment required to create jobs and to make a full return to the markets. This progress was one of the reasons that led Great-West Lifeco to renew their interest in late November 2012, almost a year to the day after they previously withdrew.

Great-West Lifeco’s Irish business, Canada Life (Ireland), is already a significant employer and is the largest Canadian employer in the State. Today’s investment by a company of their stature is a significant vote of confidence in the Irish economy and I am sure that this will lead to further investment. The transaction is even more significant to the State when seen in the context of other recent events. All told €10 billion has been invested or committed in the past six months, mainly by international investors, in transactions managed by the State or entities controlled/owned by the State

Irish Life manages approximately one million policies, with over €37 billion of assets under management and employs 2,200 people in Ireland. The financial strength of Great-West Lifeco will be of great benefit to the life assurance sector in Ireland. I would like to take this opportunity to wish Great-West Lifeco and Irish Life every success in the future.

Read the full press release

here

.